Deloitte: Positive trends observed in sectoral diversity of Azerbaijan's business environment

Azerbaijan's business environment is gradually expanding, with positive dynamics observed in income levels and sectoral diversity.

According to Report, it was reflected in the Business Confidence Survey featured in the ninth edition of Deloitte's macroeconomic report titled Business Outlook in Azerbaijan.

Based on the report, the results of the 2024 Business Confidence Survey conducted in Azerbaijan reveal notable trends in economic activity and company structures. The largest share of respondents-28%-operate in the banking and financial services sector. They are followed by companies in trade and transport-logistics, each accounting for 15%.

The survey results indicate that in 2024, business sectors in Azerbaijan have become more balanced and diverse in representation. While previous years saw participants mainly from the finance and energy sectors, this year there has been increased participation from technology, construction, and agriculture: construction – 8%, agriculture – 3%, mining and metallurgy – 3%, and other industries – 10%.

From a financial standpoint, 38% of companies reported annual revenues of less than 5 million manats (approximately $2.94 million). Companies with revenues between 10–100 million manats (about $5.88–$58.82 million) and 100–500 million manats (roughly $58.82–$294.12 million) each made up 15%. For comparison, in 2023 this figure was 44%, indicating growth in the revenue structure of some companies. Firms with annual revenues between 500 million and 1 billion manats (around $294.12–$588.24 million), and those exceeding 1 billion manats (over $588.24 million), accounted for 10%.